Learn More About Buying vs. Leasing a Toyota in Yorkville

Buying
vs. Leasing: Which is right for you?

It's important to know what you want to do when it comes
time to invest in a new vehicle, whether it's a new Toyota, certified pre-owned, or used car. We strive to keep our customers as informed as
possible, especially when it comes to such a big decision like whether or not
to buy or lease your next vehicle, so we've outlined the differences between
the two. Read below to explore the many benefits of buying and leasing a new Toyota Camry, Corolla, RAV4, Tacoma, Highlander, or other Toyota model we offer at our Yorkville showroom. As always, give us a call with any Toyota finance questions you may have at 866-972-5702.

Loan payments are usually higher than lease payments because you're
paying off the entire purchase price of the vehicle, plus interest and other
finance charges, taxes, and fees. However, as you make payments, you are
gaining equity in the vehicle. Once you're done paying off the loan, the car
is yours. Ultimately down the road, saving money since you won't have a car
payment!

Lease payments are almost always lower than loan payments because
you're paying only for the vehicle's depreciation during the lease term, plus
interest charges, taxes, and fees. Once you're done with your lease, you have
the option to get newer vehicles more often.

Early
Termination

You can sell or trade in your vehicle any time you want. If
necessary, money from the sale can be used to pay off any loan balance.

We advise all customers to ride out their lease term. However, if you
must end it early, you might be charged with early-termination charges, which
can be almost as costly as sticking out the rest of your lease term.

Vehicle
Return

When you want to get a new vehicle, you'll have to sell or trade in
your vehicle.

When your lease is up, all you do is pay any end of lease costs and
walk away. You have the option to buy the vehicle outright, start a new lease
in a different vehicle, extend your current lease, or just turn it in and
walk away!

Future
Value

Vehicles will depreciate, however, you'll have equity and its cash
value is yours to use as you like.

Depreciation doesn't affect you financially so there's no risk, and
you've still built credit, but on the downside, you don't have any equity in
the vehicle.

Mileage

You're free to drive as many miles as you please!

Most leases limit the number of miles you may drive. You'll have to
pay charges for exceeding the limits on your lease.

Excessive
Wear & Tear

You don't have to worry about wear and tear, but it could lower the
vehicle's trade-in value or resale value.

Most leases hold you responsible for any excess wear and tear. You'll
have to pay charges for exceeding what is considered normal wear and tear.
You will also have factory warranty coverage.

End
of Term

At the end of the loan term (typically 4-5 years,) you have no
further payments and you have built equity to help pay for your next vehicle.

At the end of the lease (typically 2-4 years,) you'll have to finance
the purchase of the car or lease, or buy another.

Customizing

The vehicle is yours to customize and modify yourself!

The lessor wants the vehicle returned in sellable condition. Any
modifications made will have to be removed before you return the vehicle.

Lease
& Purchasing Terms & Definitions

Lessee:The person(s) who enters the lease;
the person(s) responsible for payment of the lease.

Lessor:An entity that leased personal
property under a lease; in a traditional dealer-originated lease, the dealer is
the original lessor and the lease is assigned to a subsequent lessor, such as a
captive finance company or bank.

Acquisition
Fee: A fixed
dollar amount that is charged by the lessor that offsets some of the costs
related to setting up a lease account.

Closed
End Lease:A lease
in which the lessor is responsible for the difference between the residual
value and the realized value provided that the lessee retains the vehicle until
the date of maturity. The lessee may still be responsible for excess mileage,
wear and use.

Disposition
Fee:A fee charged by the
lessor at time of termination to process the return of the vehicle.

Excess
Mileage:Mileage
which exceeds the standards for normal use listed on the lease agreement, for
which a lessee may be charges when the vehicle is returned.

Excessive
Wear and Use:Damage
that exceeds the standards for normal use listed on the lease agreement, for
which a lessee may be charged when the vehicle is returned.

Residual
Value: The
estimated value of the vehicle at the end of the lease; this value is used to
determine a portion of the monthly payment.

Down
Payment:Cash
paid up-front by a borrower to reduce the amount financed in a lease or loan.
While a large down payment can reduce your monthly payments, it also likely
will be forfeited in the event of a totaled or stolen vehicle.

Annual
Percentage Rate (APR):Also
called a finance rate, this is the interest rate on a loan; a percentage of the
amount borrowed that a lender charges annually for the use of its money.

Contact Us Below About Financing a New Toyota or Pre-Owned Vehicle, Or Call (866) 972-5702